Mr.Cheap's Watchlist 1

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Whether you are a long term investor or a trader, certain thoughts come to mind when you engage in such activity. Will the stock rise or fall? Should I wait before I buy or sell? How will I feel if it doesn't do what I want it to do? First of all, let me make one thing clear. The price of a stock at any given moment is a random figure. It is a bid price, an asking price. If you are going to worry about this, then you might as well stick your money in index funds or money market. Never feel bad if it moves higher because it had an equal chance of moving lower. If you sold, at least you didn't lose anymore. You are in the same postion as the person who never owned the stock to begin with. That is the biggest mistake people make." I got to get back to even", a favourite expression of losers and those who hope and pray. Or" I already own the stock, so I will wait, it will eventually come back."I am as guilty of this as anybody else. It's like the old man with the turkey trap. One got away, he tried to catch it,and another got away until eventually he had no turkeys left. He started out with ten of them. Moral of the story is, sell the damn thing and don't be greedy. If the stock is rising and you want to take profits, do so. If it keeps rising, it could of equally just as well started to retreat. You are still better off than the person who never owned the stock. A good investor/trader will always think about his losses as well as his gains. It didn't happen overnight for me.I've been up hundreds of thousands and been down as well. The market is an expensive place to learn who you really are. Be aware!